CommVault Systems (NASDAQ:CVLT) Shares Gap Down – Here’s What Happened

CommVault Systems, Inc. (NASDAQ:CVLT) shares gapped down prior to trading on Tuesday. The stock had previously closed at $167.73, but opened at $153.73. CommVault Systems shares last traded at $166.1120, with a volume of 132,932 shares traded.

Trending Headlines about CommVault Systems

Here are the key news stories impacting CommVault Systems this week:

• Positive Sentiment: Commvault reported quarterly earnings of $1.38 per share, above the $1.24–$1.25 analyst consensus and up from $0.91 a year earlier. Revenue reached $312.39 million, also exceeding estimates of approximately $310 million, while growing 13.1% year over year. Commvault Systems Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company’s recurring-revenue indicators were particularly strong: subscription revenue increased 21% to $269 million, and subscription annualized recurring revenue rose 20% to $1.104 billion. Operating cash flow was $75 million and free cash flow was $71 million, supporting the investment case for Commvault’s recurring software model. Commvault Announces Second Quarter Fiscal 2027 Financial Results
• Neutral Sentiment: Investors are also assessing operating and business metrics beyond headline revenue and EPS, including how they compared with Wall Street expectations and the year-ago period. The available report highlights the importance of these indicators but does not provide additional metric details. Compared to Estimates, Commvault Q2 Earnings: A Look at Key Metrics
• Negative Sentiment: Jefferies and Cantor Fitzgerald raised their price targets to $170 and $171, respectively, but retained Hold and Neutral ratings. With the stock trading near those targets and valued at a high earnings multiple, the upgrades may offer limited incremental buying support. Jefferies price target

Wall Street Analyst Weigh In

CVLT has been the subject of a number of analyst reports. Weiss Ratings restated a “hold (c)” rating on shares of CommVault Systems in a research note on Friday, September 11th. Piper Sandler lowered CommVault Systems from an “overweight” rating to a “neutral” rating and set a $133.00 target price on the stock. in a research note on Tuesday, July 28th. Scotiabank boosted their target price on shares of CommVault Systems from $130.00 to $160.00 and gave the stock a “sector perform” rating in a report on Monday, October 5th. KeyCorp boosted their target price on shares of CommVault Systems from $125.00 to $175.00 and gave the stock an “overweight” rating in a report on Thursday, July 16th. Finally, Guggenheim reissued a “buy” rating on shares of CommVault Systems in a research report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $163.19.

CommVault Systems Stock Performance

The company has a current ratio of 2.04, a quick ratio of 2.04 and a debt-to-equity ratio of 16.94. The firm has a 50-day moving average of $145.68 and a 200-day moving average of $118.31. The stock has a market capitalization of $7.03 billion, a price-to-earnings ratio of 107.41 and a beta of 0.79.

CommVault Systems (NASDAQ:CVLT) last issued its earnings results on Tuesday, October 27th. The software maker reported $1.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.24 by $0.14. The company had revenue of $312.39 million during the quarter, compared to analyst estimates of $310.28 million. CommVault Systems had a return on equity of 88.75% and a net margin of 5.62%. The firm’s quarterly revenue was up 13.1% on a year-over-year basis. During the same quarter last year, the business posted $0.91 EPS. As a group, sell-side analysts predict that CommVault Systems, Inc. will post 2.87 earnings per share for the current year.

Insider Activity

In other news, CAO Danielle Abrahamsen sold 486 shares of the stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $142.80, for a total value of $69,400.80. Following the sale, the chief accounting officer owned 12,160 shares in the company, valued at $1,736,448. This represents a 3.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Vivie Lee sold 595 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $134.19, for a total transaction of $79,843.05. Following the completion of the sale, the director owned 15,140 shares in the company, valued at $2,031,636.60. The trade was a 3.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 29,348 shares of company stock valued at $4,202,441. 0.86% of the stock is owned by insiders.

Hedge Funds Weigh In On CommVault Systems

Several institutional investors and hedge funds have recently modified their holdings of CVLT. BlackRock Inc. acquired a new position in shares of CommVault Systems in the 2nd quarter valued at $855,420,000. Pictet Asset Management Holding SA boosted its stake in CommVault Systems by 36.2% during the 1st quarter. Pictet Asset Management Holding SA now owns 1,239,225 shares of the software maker’s stock worth $96,447,000 after purchasing an additional 329,243 shares during the last quarter. The Manufacturers Life Insurance Company purchased a new stake in shares of CommVault Systems during the second quarter worth $65,765,000. American Capital Management Inc. purchased a new stake in shares of CommVault Systems during the second quarter worth $62,493,000. Finally, Wellington Management Group LLP raised its position in shares of CommVault Systems by 57.1% in the second quarter. Wellington Management Group LLP now owns 402,054 shares of the software maker’s stock valued at $56,983,000 after buying an additional 146,055 shares during the last quarter. Institutional investors and hedge funds own 93.50% of the company’s stock.

CommVault Systems Company Profile

Commvault Systems, Inc develops data protection and cyber resilience software and services for businesses, government organizations and other institutions. Its platform is designed to help customers back up, recover, manage and secure data across on-premises infrastructure, private and public clouds, software-as-a-service applications and other distributed IT environments.

The company’s offerings include backup and recovery, disaster recovery, data security, ransomware protection, cyber-recovery capabilities and data management tools.